DocumentCode
3190134
Title
Notice of Retraction
Vertical product differentiation and horizontal merger of firms
Author
Jiangang Gao
Author_Institution
Dept. of Econ., Liaocheng Univ., Liaocheng, China
fYear
2011
fDate
8-10 Aug. 2011
Firstpage
7444
Lastpage
7447
Abstract
Notice of Retraction
After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.
We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.
The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.
In this paper, we analyze why merged firm sometimes produce only one product and sometimes produce two ones. We found the key reason for this depends on cost type of firms. If the cost of quality improvement is fixed, only one product will be manufactured, however, if the cost of quality improvement is variable, both products remain to be produced. In addition, we also analyzed the impact of merging on social welfare. We found both the consumer surplus and social welfare would decrease after merging. For this reason, the merging of duopoly with vertical product differentiation should be restricted by government.
After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.
We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.
The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.
In this paper, we analyze why merged firm sometimes produce only one product and sometimes produce two ones. We found the key reason for this depends on cost type of firms. If the cost of quality improvement is fixed, only one product will be manufactured, however, if the cost of quality improvement is variable, both products remain to be produced. In addition, we also analyzed the impact of merging on social welfare. We found both the consumer surplus and social welfare would decrease after merging. For this reason, the merging of duopoly with vertical product differentiation should be restricted by government.
Keywords
corporate acquisitions; government; social sciences; consumer surplus; duopoly; government; horizontal merger; merged firm; social welfare; vertical product differentiation; Corporate acquisitions; DH-HEMTs; Government; Industrial economics; Merging; Competition form; Cost structure; Horizontal merger; Vertical product differentiation;
fLanguage
English
Publisher
ieee
Conference_Titel
Artificial Intelligence, Management Science and Electronic Commerce (AIMSEC), 2011 2nd International Conference on
Conference_Location
Dengleng
Print_ISBN
978-1-4577-0535-9
Type
conf
DOI
10.1109/AIMSEC.2011.6011447
Filename
6011447
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